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Chancellor predicts ‘real test’ for EU budget

UK chancellor George Osborne has predicted the real test on the government’s authority will come when a proposed budget for the European Union is presented to MPs.

Speaking to BBC News today (November 1st), Mr Osborne revealed he would only present a deal to officials that will benefit the country’s taxpayers.

His comments were made after Labour backed Conservative rebels to call for a real-term cut in European spending between 2014 and 2020.

Party leader Ed Miliband described Wednesday’s defeat as a blow for prime minister David Cameron.

However, Mr Osborne said the opposition had taken a step away from government by being opportunistic and claimed they would make the same mistake the Conservatives had after losing the election in 1997.

He told BBC Radio 4’s Today programme: “I want a cut in the EU budget, David Cameron wants a cut in the EU budget.”

Mr Osbourne also refused to rule out a cut in the EU’s savings, while claiming the move is the “beginning of a negotiation”.